Julie Stephenson
About Julie Stephenson
Julie A. Stephenson is Executive Vice President and Chief Operating Officer of United Fire Group (UFG), appointed effective January 30, 2023; she was age 55 at appointment and holds a B.S. in Mechanical Engineering from Texas A&M University . She brings 25+ years of insurance leadership, including global casualty reinsurance at Swiss Re, underwriting leadership at CNA, and liability management at Chubb . Company performance during her tenure showed a strong rebound in 2024, with Adjusted ROE improving from -3.8% in 2023 to 7.9% in 2024, and TSR rising from $51.49 to $72.60 (value of $100 initial investment) ; written premium growth also advanced to $1,374.1 million in 2024 versus $1,179 million in 2023 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Swiss Re | Global Head of Casualty Reinsurance | 2021–2023 | Led global casualty portfolio; brings reinsurance, portfolio management expertise to UFG |
| CNA Insurance | COO – Middle Market | 2019–2021 | Operational leadership; middle-market execution |
| CNA Insurance | Commercial Chief Underwriting Officer | 2015–2019 | Underwriting discipline and performance leadership |
| Chubb Insurance | Global Liability Manager | Not disclosed | Liability portfolio management experience |
External Roles
No external public-company directorships disclosed in available filings .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $575,000 | $595,125 |
| Target Bonus (% of Base) | 110% | Not disclosed |
| Actual AIP (Non-Equity Incentive) ($) | $123,654 | $775,107 |
| Discretionary/Guaranteed Bonus ($) | $617,564 (includes $377,530 guaranteed component) | — |
| All Other Compensation ($) | $234,293 | $24,645 |
| Total Compensation ($) | $3,167,125 | $2,059,755 |
Performance Compensation
Annual Incentive Plan (AIP) – 2023 Design and Outcomes
| Metric | Weighting | Threshold | Target | Maximum | Actual Result | % of Target |
|---|---|---|---|---|---|---|
| Adjusted ROE | 25% | 5.0% | 6.5% | 8.0% | (4.1)% | 0% |
| Written Premium Growth ($mm) | 25% | 1,156 | 1,217 | 1,278 | 1,179 | 68% |
| Net Adjusted Loss Ratio | 25% | 65.5% | 64.5% | 63.5% | 74.2% | 0% |
| Underwriting Expense Ratio | 25% | 34.5% | 34.0% | 33.5% | 35.3% | 0% |
| Corporate Achievement Level | — | — | — | — | — | 17% |
| Individual Performance Factor (Julie) | — | — | — | — | — | 115% |
Structure notes: AIP metrics are equally weighted; individual performance factor can range 0–200% for Ms. Stephenson under offer letter terms, subject to overall caps .
Annual Incentive Plan (AIP) – 2024 Design and Outcomes
| Metric | Threshold | Target | Maximum | Actual Result | Weighted Payout % |
|---|---|---|---|---|---|
| Adjusted ROE | 2.0% | 5.0% | 8.0% | 7.9% | 14.8% |
| Written Premium Growth ($mm) | 1,215 | 1,350 | 1,485 | 1,374.1 | 21.8% |
| Net Adjusted Loss Ratio | 70.0% | 67.5% | 65.0% | 63.5% | 30.0% |
| Underwriting Expense Ratio | 35.0% | 33.5% | 32.0% | 35.8% | 0.0% |
| Core Earnings ($mm) | 25 | 50 | 75 | 81.9 | 45.0% |
| Corporate Achievement Level | — | — | — | — | 111.6% |
| Individual Performance Factor (Julie) | — | — | — | — | 107% |
Long-Term Incentive Plan (LTIP) – 2023 Grants and Vesting
| Component | Grant Value ($) | Vesting | Performance Metrics |
|---|---|---|---|
| PSUs | $316,250 | 3-year cliff (2023–2025) | Adjusted ROE and GAAP Combined Ratio (equal-weighted) |
| RSUs | $158,125 | 3-year cliff | Time-based |
| Stock Options | $158,125 | 1/3 annually over 3 years | Time-based |
| Total Target | $632,500 (pro-rated $580,973 based on start date) | — | — |
2024 equity awards (no options): RSUs/PSUs grant-date fair value $654,642; maximum value at grant if PSUs achieve highest level equals $654,638 (rounding) .
Replacement/Lost Equity RSU Awards (Make-Whole)
| Vest Date | Shares/Value | Notes |
|---|---|---|
| Mar 1, 2023 | 8,580 RSUs (includes correction shares) | Make-whole for forfeited equity at prior employer |
| Mar 31, 2024 | 4,932 RSUs | Make-whole tranche |
| Mar 31, 2024 | RSUs equivalent to CHF 125,000 (FX on 11/25/2022) | Make-whole tranche |
| Mar 31, 2025 | RSUs equivalent to CHF 500,000 (+627 shares adjustment) | Scheduled vest; retention-contingent |
2024 realized value on stock award vesting: 9,234 shares; $201,024 .
Equity Ownership & Alignment
| Ownership Metric | 2024 | 2025 |
|---|---|---|
| Beneficial Ownership (shares) | 62,322 | Not disclosed |
| % of Shares Outstanding | <1% | — |
| Shares Pledged | None of disclosed shares pledged | — |
| Stock Ownership Guideline Tier | Tier 2 (1.5x base salary) | Tier 3 (3x base salary) |
| Target Shares under Guidelines | 28,049 | 80,571 |
| Qualifying Shares Held (Guideline count) | 48,744 | 24,349 |
| Compliance Status | Exceeded target (as of record date) | Below increased target; 5-year transition allowed |
Stock Ownership Guideline counting rules (what counts/doesn’t): RSUs count; unexercised options and unvested PSUs do not; 5-year compliance window applies .
Employment Terms
| Term | Details |
|---|---|
| Role, Start, Reporting | EVP & COO; effective Jan 30, 2023; reports to CEO |
| Employment Type/Location | At-will; full-time remote in Texas with travel |
| Base Salary at Hire | $575,000; subject to annual review |
| AIP Target Bonus | 110% of base; up to 200% of target at max performance (Julie eligible) |
| Guaranteed/Make-Whole Cash | $537,000 guaranteed bonus, increased to $596,948 in March 2023 with related tax reimbursement |
| Retention Bonuses | $60,400 if COO through Mar 31, 2025 (paid May 1, 2025); $240,000 if COO through Mar 31, 2026 (paid May 1, 2026) |
| Change-in-Control (CIC) | Double-trigger; 1.5× (highest base + target bonus or 3-year average bonus if higher); 18 months insurance continuation; full vesting of LTI at target; outplacement; 18-month non-compete |
| Standalone Severance (pre-1/30/2025) | If terminated without cause before Jan 30, 2025: $1,207,500 cash (base + target bonus), 18 months health benefit reimbursement ($26,549), pro-rated AIP based on actual performance ($353,972) |
| Clawback Policy | Incentive compensation subject to clawback upon accounting restatement (errors/omissions/fraud); being revised per Dodd-Frank/Nasdaq rules |
Compensation Mix and LTIP Structure (Design)
| Element | Type | Form | Period | Purpose |
|---|---|---|---|---|
| Annual Base Salary | Fixed | Cash | Ongoing | Attract/retain; recognize individual performance |
| Annual Incentive Plan (AIP) | Variable | Cash | 1 year | Drive company and individual performance |
| Stock Options | Variable | Time-based | 3-year pro rata | Shareholder alignment, long-term value creation and retention; 25% of total LTI opportunity (2023 design) |
| RSUs | Variable | Time-based | 3-year cliff | Shareholder alignment, long-term value creation and retention; 25% of total LTI opportunity (2023 design) |
| PSUs | Variable | Performance-based | 3-year cliff | Long-term company performance (Adjusted ROE & Combined Ratio), shareholder alignment and retention; 50% of total LTI opportunity (2023 design) |
Say-on-Pay and Compensation Governance
- 2023 say-on-pay approval ~97%; five-year average ~99%; no program changes due to 2023 vote .
- Compensation Committee used FW Cook as independent consultant to review market competitiveness and peer benchmarking for 2023 program design .
- Named Executive Officers as Shareholders policy/guidelines and committee membership disclosed; none of management’s disclosed shares are pledged .
Performance & Track Record Indicators
| Indicator | 2023 | 2024 |
|---|---|---|
| Adjusted ROE (%) | -3.8% | 7.9% |
| Net Income ($000s) | -$29,689 | $31,442 |
| TSR – Value of $100 Investment ($) | $51.49 | $72.60 |
| Written Premium Growth ($mm) | 1,179 | 1,374.1 |
Equity Award Activity (Realized)
| Activity (2024) | Shares | Value ($) |
|---|---|---|
| Shares vested (stock awards) | 9,234 | $201,024 |
| Option exercises | — | — |
Investment Implications
- Pay-for-performance alignment strengthened in 2024: AIP corporate achievement 111.6% with strong results in Adjusted ROE, loss ratio, and core earnings; Julie’s AIP payout rose to $775,107, reflecting execution on key underwriting and profitability levers .
- Upcoming vesting/selling pressure: A sizable make-whole RSU tranche equivalent to CHF 500,000 vests on March 31, 2025; combined with a $60,400 retention bonus payable May 1, 2025, this creates a near-term liquidity event that could drive incremental Form 4 activity around those dates .
- Ownership alignment: Julie exceeded the 2024 guideline target (48,744 qualifying shares vs. 28,049 target) but fell below the increased 2025 target (24,349 vs. 80,571) under stricter 3x salary rules; the 5-year transition suggests ongoing accumulation needs, which can be supportive of alignment but implies potential share acquisition timing .
- Retention and change-in-control economics: Double-trigger CIC with 1.5× cash multiple and full LTI vesting at target, plus an 18-month non-compete, reduces departure risk but could dilute performance-contingent LTI upon a transaction; pre-2025 severance protection for termination without cause provided substantial cash and benefits .
- Governance considerations: Clawback policy is in place and being updated per Dodd-Frank/Nasdaq; none of the disclosed shares are pledged; 2023 say-on-pay support was high (~97%), indicating shareholder endorsement of pay design .